As per MRFR analysis, the Italy Car Rental Market Size was estimated at 4.36 (USD Billion) in 2023. The Italy Car Rental Market Industry is expected to grow from 4.7 (USD Billion) in 2024 to 6.9 (USD Billion) by 2035. The Italy Car Rental Market CAGR (growth rate) is expected to be around 3.552% during the forecast period (2025 - 2035).
The Italy Car Rental Market is experiencing significant growth driven by various key market drivers. One of the main drivers is the rise in tourism, as Italy remains one of the top destinations for global travelers. The country's rich cultural heritage, historical sites, and beautiful landscapes attract millions each year, leading to an increased demand for car rentals. Additionally, the trend towards flexible mobility solutions is gaining traction, as more people prefer renting cars for short trips rather than long-term ownership.
This shift aligns with the preferences of urban populations in cities like Milan and Rome, where space and parking can be limited.Due to various enhancing factors in the industry, there seems to be plenty of room to grow, especially with the increasing attention towards sustainability. In response to the Italian government’s green transportation efforts aimed at lowering emissions, electric vehicles are now progressively being added to the car rental company fleets. Companies are obliged to adjust their services as there is increased attention from consumers on the carbon footprint. The use of electric vehicles in Italy is encouraged through policies, making it a desirable choice for businesses as well as consumers. Italy car rental market has recently entered a new phase with greater digitalization.
Many rental services are enhancing their online platforms and mobile applications to improve user experience, offering contactless rentals and a seamless booking process. This trend is being driven by the increasing smartphone penetration and consumer preferences for convenience and efficiency. Overall, the Italy Car Rental Market is evolving with notable trends that emphasize sustainability, digital transformation, and the ever-growing demand from the tourism sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Italy is known for its rich cultural heritage and stunning landscapes, attracting millions of tourists annually. In 2022, Italy recorded over 88 million international visitors, making it one of the top travel destinations worldwide. This influx of tourists significantly boosts the Italy Car Rental Market Industry as many travelers prefer to rent cars for convenience in exploring various regions, from the Amalfi Coast to Tuscany.
The Italian tourism authority has projected a growth rate of 4.5% in tourists visiting Italy in the coming years, suggesting a continued demand for car rental services.Furthermore, major rental companies like Hertz and Avis have expanded their fleets and services in Italy, catering to this growing market and enhancing their operational capacity to meet rising consumer needs. The growth in tourism directly correlates with the increasing demand for car rentals, solidifying its role as a critical driver for the market.
The shift towards ride-sharing and mobility as a service is reshaping the Italy Car Rental Market Industry. With companies like Uber and Car2Go gaining popularity, consumers are becoming more accustomed to flexible transport options. A survey indicated that about 25% of Italians under 35 have used ride-sharing services at least once. This changing consumer behavior has prompted traditional car rental services to adapt by offering more flexible options, such as hourly rentals and car subscriptions.Such services grew by approximately 15% in terms of usage in urban areas over the past few years as urban populations seek accessible ways to commute without the burden of ownership. Consequently, this trend creates a hybrid market environment, enhancing the overall growth and innovation within the car rental sector.
Government Initiatives to Enhance Infrastructure
The Italian government has committed to improving transport infrastructure, which is vital for the Italy Car Rental Market Industry. Recent initiatives have aimed at refurbishing highways, expanding rail networks, and enhancing regional connectivity, with over €10 billion earmarked for transportation projects.
This modernization increases accessibility to various travel destinations across Italy, fostering an environment where car rentals become an essential part of both tourism and commuting.Improved roads and infrastructure reliability enhance customer satisfaction and safety, which could further drive market growth as companies like Europcar expand their offerings in well-connected regions. As infrastructure improves, more regions become accessible to tourists and locals alike, promoting the use of car rentals.
The push towards sustainability in transportation is directly influencing the Italy Car Rental Market Industry. The Italian government has set ambitious targets to increase the number of electric vehicles (EVs) on the road, aiming for 6 million EVs by 2030. This legislative support is leading rental companies to invest heavily in electric vehicle fleets. For instance, companies like Sixt and Locauto have already begun expanding their EV offerings, recognizing the rising demand among environmentally-conscious consumers.
EV rentals in Italy have seen a growth rate of 30% year-on-year as many renters look for greener options. This trend is anticipated to enhance the market's prospects, appealing especially to younger demographics that prefer eco-friendly alternatives. As public charging infrastructure expands, the attractiveness of renting electric vehicles will likely further boost the market.
The Italy Car Rental Market has been experiencing notable growth due to the increasing demand for mobility solutions among both locals and tourists. In this market, the Booking Type segment plays a crucial role in shaping user experience and overall service delivery. With the rise of digital technology and ease of access to the Internet, Online Booking has become a preferred choice for many consumers. This preference reflects broader trends in consumer behavior, where convenience and speed are prioritized, particularly among younger demographics and tech-savvy travelers.The ability to compare prices, read reviews, and make instant bookings has empowered users in Italy's competitive car rental landscape.
On the other hand, while Offline Booking is gradually losing share to its online counterpart, it still holds significance among certain customer segments that prefer face-to-face interaction or require assistance in the booking process. This group often includes older customers or those who may be unfamiliar with digital platforms, demonstrating the importance of providing diverse booking options to cater to varying preferences and needs.The Italy Car Rental Market segmentation around Booking Type highlights an evolving consumer preference, where adaptability to changing market demands is critical for rental companies.
As this market grows, understanding the intricacies of these segments helps stakeholders devise targeted strategies, respond to emerging market trends, and address challenges such as intense competition and fluctuating tourism patterns in Italy. Overall, the insights from the Booking Type segment underscore the dual approaches of catering to both tech-driven customers and traditional users, emphasizing the need for a balanced service model going forward.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Duration segment of the Italy Car Rental Market is characterized by a clear division into Short Term and Long Term rental options, reflecting the diverse needs of travelers and residents alike. In recent years, Short Term rentals have witnessed considerable demand due to the rise of tourism, business travel, and domestic commuters in Italy's urban hubs like Rome and Milan. This trend not only supports the Italy Car Rental Market revenue but also enhances travel flexibility and convenience. On the other hand, Long Term rentals are becoming increasingly significant, especially among businesses requiring fleets for employee transportation, as well as expatriates or long-stay tourists looking for reliable vehicle options.
Such arrangements help in catering to growing market segments focused on cost-effectiveness and efficiency. In addition, ongoing government initiatives to promote sustainable travel are fueling the rental market's growth, encouraging consumers to engage with rental services rather than ownership. The distinct dynamics between Short Term and Long Term options illustrate a balanced and evolving Italy Car Rental Market segmentation that is well-positioned to adapt to changing consumer behaviors and preferences, paving the way for new opportunities within the industry.
The Vehicle Type segmentation within the Italy Car Rental Market showcases a diverse landscape driven by the varying preferences of consumers and business travelers. Luxury vehicles cater to an affluent clientele seeking comfort and prestige, particularly in cities like Milan and Rome, known for their affluent lifestyles and tourism. The Executive segment serves professionals who prioritize reliability and style during their travels. Economy vehicles remain a popular choice among budget-conscious travelers, reflecting a significant share of the market due to their affordability and practicality for urban navigation.
SUVs have also gained traction, appealing to families and adventurers alike, thanks to their spaciousness and adaptability to Italy's varied geography, from city streets to scenic countryside. Additionally, the Others category captures niche preferences, including electric and hybrid cars, which align perfectly with Italy's commitment to sustainability and environmental consciousness. This segmentation insight highlights the dynamic nature of the market, which continues to evolve by responding to consumer demands and industry trends, shaping the overall landscape of the Italy Car Rental Market and its revenue potential.
The Italy Car Rental Market, focusing on the Application segment, is gaining momentum, with significant contributions from both leisure and business applications. The leisure and tourism sector stands out, driven by Italy's rich cultural heritage, historical attractions, and picturesque landscapes, which consistently draw millions of international travelers seeking exploration. This influx not only stimulates demand for car rentals but also generates revenue streams for the industry. Meanwhile, the business sector, essential for corporate travel, utilizes car rentals for efficiency and convenience, particularly in major urban areas like Milan and Rome, where companies often require flexible transportation solutions.
As the Italy Car Rental Market evolves, trends such as eco-friendly vehicle options and digital booking platforms are emerging, reflecting the industry’s response to changing consumer preferences and sustainability concerns. Challenges include increasing competition and regulatory changes impacting operational costs. Nevertheless, opportunities abound as the Italian government invests in tourism infrastructure, further enhancing accessibility and promoting regional travel, thereby bolstering both leisure and business segments within the car rental market.
The Italy Car Rental Market is increasingly shaped by its End User segment, which primarily encompasses self-driven and chauffeur-driven services. Self-driven rentals allow customers the freedom to explore Italy's picturesque landscapes, enhancing tourism and local travel experiences. This flexibility is highly valued by both domestic and international travelers, reflecting a growing trend toward personalized travel. On the other hand, chauffeur-driven services cater to the convenience-seeking clientele who prioritize comfort and efficiency, particularly in urban areas like Rome and Milan, where traffic can be a challenge.
With increasing disposable income and a rise in travel activity within Italy, both segments are capturing substantial interest, indicating strong growth potential. Additionally, the incorporation of technology, such as mobile apps for booking and vehicle tracking, plays a crucial role in enhancing customer experience across both self-driven and chauffeur-driven rentals. As these segments evolve, they continue to drive the overall dynamics of the Italy Car Rental Market, catering to a diverse range of consumer preferences and needs.
The Italy Car Rental Market is characterized by a competitive landscape where various players strive to capture the attention of both local and international clientele. Factors such as tourism, urban mobility, and the rise of digital platforms have reshaped how car rental services operate. The market dynamics are influenced by the unique travel habits of tourists, as well as the preferences of locals requiring transportation options. The presence of several established companies, along with new entrants focusing on niche segments, has created a diverse offering of services. Enhanced customer service, innovative booking platforms, and flexible rental terms are becoming key differentiators in this sector.
Car rental companies are increasingly adopting strategies to align with changing consumer demands and competitive pressures, ultimately enhancing the customer experience while maintaining profitability in this growing market.Focusing specifically on Hertz within the Italy Car Rental Market, this company exhibits substantial strength through its strong brand recognition and established market presence. Hertz has built a reputation for reliability and extensive operational coverage in major cities and tourist destinations across Italy.
The company leverages an expansive fleet offering a wide range of vehicle types, from economy cars to premium options, catering to a diverse customer base. Additionally, Hertz's integration of technology into its service delivery, such as online reservations and contactless pick-up, further solidifies its competitive edge in Italy. With an emphasis on customer satisfaction and a strategic approach to operational efficiency, Hertz maintains a prominent position in the market, continuously adapting to the evolving trends in transportation and mobility.Sicily by Car also plays a significant role in the Italy Car Rental Market, specializing in providing services that cater to both tourists and local citizens looking for car rentals tailored to their unique needs.
The company focuses on offering a variety of services, including short-term rentals, long-term leases, and a range of vehicles from economy to luxury. Known for its strong regional presence, particularly in Sicily, this company has established a solid operational footprint that appeals to tourists seeking to explore the island's attractions. Over the years, Sicily by Car has engaged in partnerships and strategic alliances that have enhanced its market reach and customer engagement.
The strengths of Sicily by Car reside in its customer-centric approach, localized service offerings, and responsive operations, enabling it to adapt to ongoing market changes and consumer preferences in Italy. As the company continues to navigate mergers and acquisitions, it aims to strengthen its market position and expand its service portfolio, ensuring it remains competitive amid the evolving landscape of the Italian car rental sector.
In recent developments within the Italy Car Rental Market, companies such as Hertz and Sixt have reported a steady recovery in demand following the decline caused by the COVID-19 pandemic. Sicily by Car has expanded its fleet to cater to the increasing number of tourists, while Avis and Budget have introduced attractive packages to capture business travelers. In terms of mergers and acquisitions, Enterprise announced the acquisition of Maggiore in April 2023, strengthening its position in the Italian market. Growth in market valuation has led to increased investment in sustainable vehicle options, with several companies, including Europcar and Alamo, committing to electric and hybrid fleets by 2024.
Additionally, Goldcar's recent partnership with major hotel chains aims to integrate car rental services into travel packages, enhancing customer convenience. Major happenings over the last two years include the gradual lifting of travel restrictions in June 2021, which significantly boosted rental activities. In August 2022, Rentalcars.com reported a 30% year-on-year increase in bookings, indicating a positive trend. Overall, the Italy Car Rental Market is witnessing revitalization with a focus on sustainability and customer-centric offerings.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 4.36 (USD Billion) |
| MARKET SIZE 2024 | 4.7 (USD Billion) |
| MARKET SIZE 2035 | 6.9 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.552% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Hertz, Sicily by Car, Firefly, Budget, Rentalcars.com, Sixt, Avis, Bravacar, Locauto, Goldcar, Alamo, Enterprise, Maggiore, Europcar, National |
| SEGMENTS COVERED | Booking Type, Duration, Vehicle Type, Application, End User |
| KEY MARKET OPPORTUNITIES | Rising tourism demand, Increased EV rentals, Expansion of airport services, Growth in digital booking platforms, Customized corporate rental solutions |
| KEY MARKET DYNAMICS | increase in tourism demand, shift towards electric vehicles, rise of online booking platforms, emphasis on flexible rental terms, growing interest in leisure travel |
| COUNTRIES COVERED | Italy |
Frequently Asked Questions (FAQ) :
The Italy Car Rental Market is expected to be valued at 4.7 billion USD in 2024.
By 2035, the Italy Car Rental Market is projected to reach a value of 6.9 billion USD.
The CAGR for the Italy Car Rental Market is anticipated to be 3.552% during the forecast period from 2025 to 2035.
In 2024, the online booking segment of the Italy Car Rental Market is expected to be valued at 2.5 billion USD.
The offline booking segment of the Italy Car Rental Market is projected to be valued at 2.2 billion USD in 2024.
Key players in the Italy Car Rental Market include Hertz, Sicily by Car, Firefly, Budget, and Sixt, among others.
There are significant opportunities for growth in the online booking segment and expansion into emerging regions within Italy.
The market is adapting to changing consumer preferences by enhancing online booking systems and offering greater flexibility in rental options.
Challenges in the Italy Car Rental Market include increased competition and changing regulatory frameworks that affect operations.
Emerging trends include a growing preference for environmentally friendly vehicles and an increase in demand for flexible rental options.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
